Paid off all debt, have 8 defaults, now what?

Legacy_user

So, I stupidly managed to get myself in to debt again as I dropped to a lower paid job (better future earnings so it isn't regret, I enjoy it also) but didn't want to drop my spending.

I've just paid off this month a total of £2900 of my debt:

• £500 Santander overdraft (was costing me £1 a day!) - Closed the overdraft
• £250 Halifax overdraft - Closed the overdraft
• £1250 Capital One Credit card #1 - Kept the card open, shall I close?
• £500 Capital One Credit card #2 - Closed the card
• £250 Barclays Credit card - Closed the card
• £150 PayPal Credit - Closed the credit account

I'm 23 years old, I have EIGHT defaults from when I was 17/18.



I know credit scores aren't accurate but mine are the following on the following sites:
Noddle/CallCredit: 517
ClearScore/Equifax: 252
Experian: 361

This hasn't reflected the £2900 I've just paid off, purely because it was only paid off today, so should update next month.

I want to get myself ready to buy a house in 2 years time, just after my defaults come off. What shall I do to get myself ready? I have around £15,000 saved and have just taken out finance on a fiesta at £140 a month and got rid of my C63 (had £10,000 in equity, but never drove it and wanted to save for a house finally).

I never see improvements, I know it'll be hard with 8 defaults, but it's definitely bringing me down knowing I've come so far but still have so long to go.

[Deleted User]

Wait for the defaults to drop off.

Get a SIM-only phone contract.

Get a credit card and use it for usual monthly spends and pay back in full each month after the statement.
Repeat each month.

easterbunni

Save save save as big as a deposit as you can.

I do believe that if you can keep the bank accounts open, then the defaults will disappear quicker than if you close them.

Interestingly, your Noddle "score" is only a little lower than mine, and I don't have any defaults :rotfl:

System

!!! wrote: »

Wait for the defaults to drop off.

Get a SIM-only phone contract.

Get a credit card and use it for usual monthly spends and pay back in full each month after the statement.
Repeat each month.

I have 2 sim cards (1 is unlimited three data that I use to hotspot in my house, at work etc, £8 a month for unlimited everything. The other is EE for £39 a month, I use that as my actual phone, when it runs out this year I will just stick with my three sim.

easterbunni wrote: »

Save save save as big as a deposit as you can.

I do believe that if you can keep the bank accounts open, then the defaults will disappear quicker than if you close them.

Interestingly, your Noddle "score" is only a little lower than mine, and I don't have any defaults :rotfl:

For sure, I've set up standing orders which will move my money monthly to save without even noticing it. Hopefully this will help me, I have very small outgoings now, so hopefully I can keep saving. I've closed my Santander account, purely because I accidentally went £2 over my overdraft (petrol at tesco pay at pump) and didn't notice for 3 days and they charged me £30. I know there's charges set in place, but to charge £30 for £2 is ridiculous, and their £1 overdraft/day charge made me feel like if I had heavy debt, they'd just be making me much worse.

Thanks for your replies, I appreciate the kind words and advice.

[Deleted User]

easterbunni wrote: »

Save save save as big as a deposit as you can.

I do believe that if you can keep the bank accounts open, then the defaults will disappear quicker than if you close them.

Wrong. It’s still 6 years regardless.

Interestingly, your Noddle "score" is only a little lower than mine, and I don't have any defaults :rotfl:

Irrelevant since the scores are purely for entertainment purposes.

Some incorrect information there...

Willing2Learn

Hey, well done vq12 for successfully busting all your debts.

And just to clarify, your defaults are all removed from your credit files, six years from the date of default, regardless of whether the account is open or closed.

System

!!! wrote: »

Some incorrect information there...

I think they were referring to if my credit would improve from closing the accounts or leaving them open.

Willing2Learn wrote: »

Hey, well done vq12 for successfully busting all your debts.

And just to clarify, your defaults are all removed from your credit files, six years from the date of default, regardless of whether the account is open or closed.

Thank you, much appreciated! I'm glad I did, it'll make me feel better about my life for sure. I've got a countdown to when they're removed, can't wait.

[Deleted User]

vq12 wrote: »

I think they were referring to if my credit would improve from closing the accounts or leaving them open.

No it specifically said closing accounts make the defaults disappear quicker.
That’s incorrect.

Also your “credit” won’t improve (or otherwise) by closing the accounts.

System

!!! wrote: »

No it specifically said closing accounts make the defaults disappear quicker.
That’s incorrect.

Also your “credit” won’t improve (or otherwise) by closing the accounts.

For sure, I know they'll be there until the end of the 6 years (see my screenshot in the first post).
I've already closed Santander off anyway, and closed all the credit cards I don't use. I've now kept the £1250 one and will use it for small bills during the month that I pay off in full every month to avoid interest.